Energy supplier Uniper is set to be bailed out to the tune of US$9.4bn as the German government confirmed it would prefer to save giant suppliers rather than pass on surging prices to consumers.
In the UK, German group Uniper owns and operates a flexible generation portfolio of seven power stations, a fast-cycle gas storage facility and two high-pressure gas pipelines, it said on its website.
The German government does not intend to initiate a clause allowing gas companies to pass on price hikes to consumers, government sources told Reuters.
It also confirmed it would not impose a levy to make gas more costly for everyone and said it is leaning towards a rescue plan because it believes Uniper to be the only company that may need a lifeline.
The bailout could likely be coupled with a capital injection, the sources told Reuters.
Companies similar to Uniper, which is Germany’s biggest importer of Russian gas, have been tightly squeezed as they are unable to pass on higher wholesale prices to customers on long-running contracts.